On taxes and other obligatory payments to the budget (Tax Code)

Article 173. Control over transfer pricing

Tax authorities exercise control over transfer pricing for transactions in accordance with the procedure and in the cases provided for by the legislation of the Republic of Kazakhstan on transfer pricing.
Article 174. Control over compliance with the procedure for recording, storing, valuing, further use and sale of property converted (received) into state ownership

1. A tax authority exercises control over compliance with the procedure for recording, storing, valuing, further use and sale of property converted (received) into state ownership, over full and timely receipt of money by the budget in the event of its sale, as well as the procedure for transferring property converted (received) into state ownership in accordance with the procedure and within the time limits established by the Government of the Republic of Kazakhstan.

2. The procedure for recording, storing, valuing, further use and sale of property converted (received) into state ownership is approved by the Government of the Republic of Kazakhstan.
Article 175. Monitoring of activities of authorized state bodies, local executive bodies and the State Corporation “Government for Citizens”

Footnote. The heading of Article 175 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).

1. The tax authorities shall conduct monitoring of the activities of authorized state bodies, local executive bodies and the State Corporation “Government for Citizens” in the manner prescribed by this article.

Monitoring of activities of the authorized state bodies and the State Corporation “Government for Citizens” shall be conducted in terms of correctness of the calculation, completeness of the collection and timeliness of payments transfer to the budget, and also reliability and timeliness of information provided to the tax authorities.

Activities of local executive bodies are controlled in terms of their correct calculation, full collection and timely transfer of payments to the budget, timely submission of reliable information on property tax, vehicle tax, land tax and payments to tax authorities.

The ground for conducting monitoring of the activities of authorized state bodies, local executive bodies and the State Corporation “Government for Citizens” (hereinafter -the authorized state bodies for the purposes of this article) shall be the decision of the tax authorities on appointing control (hereinafter - the decision) in the form established by the authorized body containing the following details:

1) the decision’s date and registration number by tax authorities;

2) the name and identification number of the authorized state body;

3) the ground for taking control measures;

4) the positions, last names, first names, patronymics (if they are indicated in identity documents) of tax officials exercising control, as well as specialists of other state bodies involved in control activity in accordance with this article;

5) the time frame of control;

6) period of control;

7) issues of control;

8) a note made by the authorized state body of its familiarization with and receipt of the decision.

The decision is subject to state registration by a state body that carries out statistical activities in the field of legal statistics and special accounts within its competence, prior to the commencement of control.

2. Tax officials indicated in the decision, other persons involved in carrying out control in accordance with this article, and authorized state bodies are control participants.

When exercising control, authorized state bodies assist tax authorities in obtaining documents and information required for exercising control, in tax officials’ access to taxable items for inspection.

Authorized state bodies may be checked for one and several types of taxes and payments to the budget at the same time.

In case of a hindrance to obtaining documents and information and also to inspecting taxable items, an act on denial of entry to tax officials for exercising control shall be drawn up.

The act on denial of entry to tax officials for exercising control is signed by tax officials exercising control and the authorized state body. In case of refusal to sign this act, the authorized state body is obliged to give written explanations of a reason for the refusal.

The control is deemed to begin on the date of the authorized state body’s receipt of a copy of the decision or the date of drawing up an act on the authorized state body’s refusal to sign a copy of the decision.

In case of the authorized state body’s refusal to sign a copy of the decision, a tax official carrying out a control activity draws up an act on the refusal to sign, in the presence of (at least two) witnesses. The act on the refusal to sign shall specify:

1) the place and date of its compilation;

2) the last name, first name and patronymic (if it is indicated in an identity document) of the tax official that drew up the act;

3) the last name, first name and patronymic (if it is indicated in an identity document), identity card number, address of the place of residence of the witnesses;

4) the number, date of decision, name of the authorized state body, its identification number;

5) the circumstances of the refusal to sign the copy of the decision.

The authorized state body’s refusal to receive the decision is not a ground for the abolition of tax control.

3. The time frame of control shall not exceed thirty business days from the delivery of the decision on control to the authorized state body. The specified period can be extended up to fifty business days by the tax authority that scheduled the control.

Control over activities of authorized state bodies may not be carried out more often than once a year.

4. The time frame of control shall be suspended for time periods beginning on the date of delivery of the tax authority’s requests for submitting documents to the authorized state body and ending on the date of the authorized state body’s submission of the documents requested for control, as well as for those beginning on the date of sending the tax authority’s request to other territorial tax authorities, state-run banks and organizations carrying out certain types of banking operations, and other organizations operating in the territory of the Republic of Kazakhstan, and ending on the date of receipt of information and documents following the request.

5. In case of suspension (resumption) of the time frame of control, tax authorities shall send to the authorized state bodies a notification with the following details:

1) the date and registration number in the tax authority of a notification of suspension (resumption) of the time frame of control;

2) the name of the tax authority;

3) the name and identification number of the audited authorized state body;

4) the date and registration number of the suspended (renewed) decision;

5) the ground for suspending (resuming) control;

6) the date of delivery and receipt of the notification of suspension (resumption) of the time frame of control.

When extending, suspending the time frame, period and (or) altering the list of control participants, a new decision is issued in the form established by the authorized body in addition to the one issued earlier.

6. After completing control measures, a tax official shall draw up a control act specifying:

1) the place of control, the date of drawing up the control act;

2) the name of the tax authority;

3) the positions, last names, first names, patronymics (if they are indicated in identity documents) of the tax officials hat conducted the control activity;

4) the name, identification number and address of the authorized state body;

5) the last names, first names, patronymics (if they are indicated in identity documents) of the head and officials of the authorized state body;

6) the positions, last names, first names, patronymics (if they are indicated in identity documents) of officials of the authorized state body, with whose knowledge and in whose presence control was exercised;

7) information on the previous control and measures taken to eliminate earlier revealed violations;

8) the results of the conducted control;

9) the positions, last names, first names, patronymics (if they are indicated in identity documents) of specialists of other state bodies involved in the exercise of control.

7. If an official of the authorized state body refuses to sign a copy of the control act, the tax official exercising control shall draw up an act on refusal to sign in the presence of (at least two) witnesses. The act on refusal to sign shall specify:

1) the place and date of its drawing up;

2) the last name, first name and patronymic (if it is indicated in an identity document) of the tax official that drew up the act;

3) the last name, first name and patronymic (if it is indicated in an identity document), the number of the identity document, the place of residence of the witnesses;

4) the number, date of decision, the name of the authorized state body, its identification number;

5) the circumstances of the refusal to sign a copy of the decision.

8. In case of violations revealed as a result of control measures, tax authorities shall issue a request for elimination of violations of the tax legislation of the Republic of Kazakhstan.

The request to eliminate violations of the tax legislation of the Republic of Kazakhstan (hereinafter referred to as the request) is a tax authority’s notification sent to the authorized state body in hard copy requiring it to eliminate the violations specified in the control act by the state body. The form of the request is established by the authorized body.

The request shall specify:

the name of the authorized state body;

the identification number;

the ground for for the request;

the date of the request;

the amount to be collected to the budget by the authorized state body.

The request shall be sent within five business days from the delivery of the control act to the head (the person acting as head) of the audited authorized state body by hand against signature or in any other way confirming its dispatch and receipt.

The request is subject to execution by the authorized state body within thirty business days from its delivery (receipt).

9. Collection of tax debts discovered as a result of control is carried out by authorized state bodies responsible for correct calculation, full collection and timely transfer of taxes and payments to the budget.

10. The authorized state bodies are responsible for correct calculation, full collection and timely transfer of taxes and payments to the budget, as well as for reliable information and its timely submission to tax authorities in accordance with the laws of the Republic of Kazakhstan.

Footnote. Article 175 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2021); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).